First RMD Year
Person turns 70 1/2 in November of 2011. #1 Do they need to wait until November to take the RMD or to use it for charitable contribution or can they take it now #2 Aside from the RMD from the IRA, is one required to take an RMD from a 401K plan?
Permalink Submitted by mk foss on Tue, 2011-05-31 17:24
A RMD is due from each 401k plan by April 1 of the year after reaching age 70.5 – the second RMD is due the following year so it’s best to take the first RMD in the year you attain age 70.5. The first distribution that year from the 401k is RMD whether it comes before or after November.
The IRA RMD can also be claimed at any point during the year one attains age 70.5; you don’t have to take an RMD from each IRA as long as you meet the requirement by determining the RMD taking into account all 12/31/10 IRA balances.
The “charitable rollover” in lieu of an RMD can only be taken after age 70.5 is attained, so if the individual wants to use a charitable distribution to meet all or part of the RMD it must occur late in the year after the individual’s half-birthday.
Permalink Submitted by Alan Spross on Tue, 2011-05-31 18:34
Mary Kay is correct.
The upshot of this is that the person needs to wait until 70.5 before taking any IRA distribution this year if they want to use a QCD to cover the RMD. If a distribution is taken before that date, it will apply to the RMD and while the QCD can still be made, it will NOT apply to the RMD to the extent of prior distributions.